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Capital Bank Financial Corp. Reports Third-Quarter 2012 Results

The provision for newly originated loans served to increase the allowance to 1.05% of $1.2 billion in originated loans outstanding. Net recoveries for newly originated loans were $0.3 million for the third quarter.

During the third quarter, non-performing loans declined from 8.4% to 8.3% of total loans as acquired impaired loans greater than 90 days past due declined by $11.2 million to $326.5 million and nonaccrual loans declined by 10.8% to $11.2 million.

Non-Interest Expense

Non-interest expense increased to $69.5 million for the third quarter of 2012 from $58.6 million for the second quarter and from $48.8 for the third quarter of 2011. The main driver of the increase for the quarter was an increase of $4.5 million in OREO related costs; $2.9 million resulting from the prepayment of all our remaining FHLB advances; a $2.1 million increase in merger and conversion related expenses and a $1.8 million legal settlement. Compensation related costs declined $0.3 million as the Company continues to rationalize excess capacity. At the end of the third quarter, headcount was reduced by 138 people from the end of the prior quarter.

Financial Position

During the third quarter of 2012, total assets decreased by $66.7 million to $6.2 billion as of September 30, 2012 from $6.3 billion as of June 30, 2012.

Total shareholders' equity increased by $132.4 million during the quarter to $1.2 billion at September 30, 2012, primarily as a result of our initial public offering and the tax benefit discussed above. Tangible book value per share was $18.26 per common share as of September 30, 2012.

The Company's national bank subsidiary, Capital Bank N.A., reported Tier 1, Tier 1 Risk-Based and Total Risk-Based capital ratios of 12.0%, 17.4% and 18.8%, respectively, as of September 30, 2012.

Conference Call

The Company will host a conference call today at 11:00 a.m. Eastern Time. The number to call for this interactive teleconference is (719) 325-2329, and the confirmation pass code is 5632047. Please dial in 10 minutes prior to the beginning of the call. A live broadcast of the conference call will be available online at the Company's web site at
www.capitalbank-us.com , by following the link to Investor Relations. A telephonic replay of the conference call will be available through November 5, 2012, by dialing (719) 457-0820 and entering pass code 5632047. An on-line replay of the call will be available at the same site for 90 days.

About Capital Bank Financial Corp.

Capital Bank Financial Corp. is a national bank holding company, formed in 2009 to create a premier regional banking franchise in the southeastern United States. CBF is the parent of Capital Bank N.A., a national banking association with approximately $7.5 billion in total assets and 165 full-service banking offices throughout Florida, North Carolina, South Carolina, Tennessee and Virginia. To learn more about Capital Bank, N.A., please visit
www.capitalbank-us.com .

Forward Looking Statements

Information in this press release contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Accordingly, these statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of several factors more fully described under the caption "Risk Factors" in the prospectus filed by us with the Securities and Exchange Commission. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward looking statements including, but not limited to statements regarding: (1) changes in general economic and financial market conditions; (2) changes in the regulatory environment; (3) economic conditions generally and in the financial services industry; (4) changes in the economy affecting real estate values; (5) our ability to achieve loan and deposit growth; (6) the completion of our future acquisitions or business combinations and our ability to integrate the acquired business into our business model; (7) projected population and income growth in our targeted market areas; and (8) volatility and direction of market interest rates and a weakening of the economy which could materially impact credit quality trends and the ability to generate loans. All forward-looking statements are necessarily only estimates of future results and actual results may differ materially from expectations. You are, therefore, cautioned not to place undue reliance on such statements which should be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Further, any forward-looking statement speaks only as of the date on which it is made and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events.

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